Improving Your Freight Costs – To begin

Whether you are a large company or a small one, if you use freight carriers you need to be reviewing the price you are charged and the service you receive on a regular basis. Best case scenario: this would be happening with all your suppliers.

Carriers, as with most suppliers, will over time become complacent, the service you are receiving slowly gets behind the rest of the market and your costs as a percentage of sales are not as good as they once were.

A review of your suppliers and a comparison with the market will tell you how much more you could be saving; then again it could also show you how much you are already saving (although this happens a lot less).

In my blog, I will explain the steps you too can follow to improve your costs and service.

This process can be informal by just requesting a quote or formal, using a detailed RFP process. Either way it is about stopping the leakage, it is also about improving the relationship you have with your service providers. So until next time, start reviewing what information and history you have now or where you can get it from.

 

* Customer Service – The missing link within…

There are many, many comments and blogs across the web stating that Customer Service is critical to the success of the business yet so many businesses are failing in their customer service – and dismally so.

There are just as many sites informing people of how to provide great customer service, with statements such as “customer is always right”  to apologising personally and sincerely to the customer whenever there is a mistake or error, even if it was the customers fault.

I actually agree with 90% of the ideas and protocols of how to deal with a customer. But most of these actions and ideas are about “making the Customer happy” now.  This is all good stuff, but what is needed is the attitude not just the actions and words, customers do know how you feel about them, irrespective of what you say or do.

I have found that if you do not genuinely and sincerely (already) care for your customers, then you need to think, act and feel that the customer in front of you is the only customer you have, and what can you do to make them come back, and be happy to do so! Its not just about making them happy now.  If you are focused on their return visit, you act, say and behave differently.  They will feel you value them more, rather than “just making them happy and keeping them quiet” and they are more likely let you know what you need to do differently (in a nicer way).

You do not need to give away profits, as buying customer loyalty this way will send you broke.  It is well known customers will gladly come back to a store selling average products at normal prices if the service is great, they do not return to those with great products at less than normal prices if the service is bad, or even average in some cases.

My algorithm illustrates the value of true Customer Service
Loyalty = (Quality / Price) x Service

Rating

1

5

9

Service

Poor

Average

Fantastic

Quality

Bad

Average

Perfect

Price

Cheap

Average

Expensive

The effect when all extreme variables are compared

Nil benefit

Price only

Quality only

Service only

Q +  P

S + P

S + Q

All as  Benefit

Service

1

1

1

9

1

9

9

9

Quality

1

1

9

1

9

1

9

9

Price

9

1

9

9

1

1

9

1

Loyalty

0.11

1

1

1

9

9

9

81

The difference with each of these options, is that Quality and Price are a cost to provide, whereas Service is really just an attitude, and could be considered value at no cost, so if you can only supply 2 out of the 3, supply either “Service and Price” or “Service and Quality” – it is the cheapest option.